[ Nippon Keidanren ] [ Policy ]

Outline of Proposal on Pension System Reform for 2004

September 10, 2003

Nippon Keidanren
(Japan Business Federation)

I. The Pension System: Problems and the Path to Solution

The Trinity Reform and Expansion of Private Pension Systems

  1. Increased burden on working generations
  2. Widening of inequality gap between generations
  3. Hollowing out of the National Pension Fund system

[Path to Solution]
Public pensions
  1. Restrict increases in premium rates
  2. Limit benefits
  3. Convert to basic pension based on indirect taxation
Private pensions
  1. Expand support for self-help

  • Restoration of confidence in the pension system
  • Elimination of concern about the sustainability of the pension system
  • Preservation/boosting of socioeconomic activity

II. Major Necessary Reforms

(1) Public Pension = Promotion of Trinity Reform

  1. Premium burden --> Control of rate increases and implementation of fixed rate system
  2. Limit benefits --> Suppress to 20% level over a set period
  3. Reform basic pension system --> In the future, convert to basic pension based on indirect taxation (application of consumption tax revenues)
    [Reforms for the immediate future]

(2) Private Pensions --> Expansion of tax-related support measures

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